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(Alliance News) - Stocks were higher early on Friday after China offered to waive tariffs on some US products, with US jobs also in focus later.
The FTSE 100 index was 17.54 points higher, or 0.3%, at 7,155.39.
The FTSE 250 was up 77.90 points, or 0.4%, at 20,785.23, and the AIM All-Share was 0.3% higher at 908.32.
The Cboe UK 100 was up 0.3% at 12,142.68, the Cboe UK 250 was 0.4% higher at 18,700.09, and the Cboe Small Companies flat at 11,395.52.
In European equities on Tuesday, the CAC 40 in Paris was up 0.3%, while the DAX 30 in Frankfurt was 0.2% higher.
China said on Friday it will offer a tariff waiver to "some" imports of US soybeans and pork, in the latest sign of easing trade tensions between Beijing and Washington.
The world's two biggest economies have exchanged blows for over a year, with tariffs now impacting hundreds of billions of dollars in two-way trade.
The olive branch comes at a time when the two sides are edging towards a partial deal that includes a promise to increase the purchase of US farm produce.
"The Customs Tariff Commission of the State Council is carrying out the exclusion of some soybeans, pork and other commodities based on applications from enterprises," the finance ministry said Friday in a statement.
Focus later will be on US non-farm payrolls due to be released at 1330 GMT. The US jobs report comes two days after payroll processor ADP reported US private sector employment increased less than expected.
In the US on Thursday, Wall Street ended just about higher, with the Dow Jones Industrial Average closing 0.1% up, the S&P 500 up 0.2%, and the Nasdaq Composite marginally higher.
The Japanese Nikkei 225 index closed up 0.2% on Friday. In China, the Shanghai Composite closed up 0.4%, while the Hang Seng index in Hong Kong ended 1.0% higher.
On the London market, Associated British Foods rose 1.2% as it said its Sugar business will benefit "materially" from a rise in prices and reduced costs in its year ending September 2020, with the Grocery unit set for "strong" profit and margin growth.
Primark has a solid pipeline of new sites, AB Foods continued, with the margin to reduce "only" a small amount year-on-year.
Speaking at the company's annual general meeting Friday, Chair Michael McLintock said the firm continues to expect adjusted earnings per share growth in its new financial year.
Insurance services provider Phoenix Group was 1.2% higher as it agreed a deal to buy ReAssure Group, which is part of Swiss Re, for GBP3.25 billion.
Phoenix will pay Swiss Re GBP1.2 billion in cash, as well as shares which will lead to the Swiss firm holding a 13% to 17% stake in Phoenix. Another ReAssure shareholder, MS&AD Insurance, will get an 11% to 15% stake in Phoenix.
Phoenix said the deal will add GBP84 billion of assets under administration and 4.1 million policies, and will generate additional cash flows of GBP7.0 billion "over time".
Construction firm Berkeley Group was down slightly, by 0.4%, as it reported a 31% fall in pretax profit for the six months to September to GBP276.7 million, with revenue down 44% to GBP930.9 million.
However, Berkeley said this profit drop was expected and simply represents profitability returning to normal levels. The decline was due to a number of central London projects finishing during the half.
Berkeley said it was a "good" start to the year. It is on track to deliver GBP3.3 billion of pretax profit in the six years to 2025, and also on track to return GBP280 million per year in the same period.
International Consolidated Airlines was up 0.8%, as Peel Hunt initiated the British Airways owner with a Buy rating. On Thursday, Mainfirst had upped it to Outperform from Neutral.
Conversely, telecoms firm BT Group fell 1.0% as UBS cut its rating to Sell from Neutral.
The UK Competition & Markets Authority has accepted remedies put forward by FTSE 250 travel operator FirstGroup and partner Trenitalia, after the regulator expressed competition concerns on 21 routes in the West Coast rail franchise.
The franchise can now be awarded without the need for a phase two investigation, it said.
FirstGroup shares were 0.9% higher in early trade in the midcap index.
UK Prime Minister Boris Johnson will face the leader of the opposition, Jeremy Corbyn, in a head-to-head debate later, after he was berated by broadcaster Andrew Neil for refusing to do an interview on his BBC show.
Neil said if the prime minister is expected to face the likes of Donald Trump and Vladimir Putin then he should be able to sit down for a half-hour interview with him.
Johnson has been accused of "running scared" from scrutiny by avoiding in-depth questioning from the veteran journalist, even though rival leaders, including Corbyn, have taken part.
The prime minister, who has also refused to do an interview on ITV, will debate Corbyn on the BBC on Friday night, with less than a week to polling day.
Elsewhere in the UK, high street retailers suffered a lacklustre November in the critical build-up to Christmas as shoppers held off on spending ahead of Black Friday, figures show.
In-store sales declined by 1.9% year-on-year in November from an already negative base of minus 2.6%, according to BDO's High Street Sales Tracker.
Figures across the month suggest discounting has become increasingly important for driving consumer spending, with retailers experiencing a lacklustre month before a substantial increase in sales the week of Black Friday.
Black Friday took place a week later this year, distorting year-on-year figures, but BDO said in-store like-for-like sales were down 17% on the same week last year – one of the worst weekly results since the "Beast from the East" hit Britain in March 2018.
The pound was quoted at USD1.3145, broadly flat from USD1.3150 late Thursday.
The pace of Germany's industrial production decline accelerated in October, Destatis reported on Friday, with the reading well short of expectations.
October's industrial production was 1.7% lower on the prior month, after a 0.6% month-on-month decline in September. On a yearly basis production was 5.3% lower, from a revised 4.5% decline in September. The September annual figure had previously been reported at a 4.3% decline.
According to FXStreet, economists had forecast a 0.1% rise in month-on-month production in October, and a 2.8% yearly decline.
By George Collard; georgecollard@alliancenews.com
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